The document provides an overview of performance appraisal methods, including ranking, rating scales, checklists, critical incidents, essays, and behaviorally anchored rating scales. It discusses the importance of how performance management is implemented and focuses on using the process as a tool to guide individual and team development. The results of performance appraisals can also feed into an organization's talent management system to support competency analysis, learning and development, career planning, and strategic workforce planning.

1. Summary of performance appraisal
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I. Contents of getting summary of performance appraisal
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Performance management is about achieving results in a manner that is consistent with
organizational expectations. Integrating competencies within the performance management
process supports the provision of feedback to employees not only on “what” they have
accomplished (i.e., performance goals), but also “how” the work was performed, using
competencies for providing feedback. Assessing competencies as a part of performance
management is an important means of assisting employees in understanding performance
expectations and enhancing competencies.
Importance of how Performance Management is implemented
Regardless of how the system and forms are designed, the latest research indicates that how the
Performance Management process is implemented is as important, if not more important than the
defined form, process and the performance appraisal itself.
The issue is that performance management is often viewed to be a series of prescribed steps
within formal administrative systems that are disconnected from the day-to-day activities, rather
than a process for supporting performance effectiveness (e.g., communicating clear work
expectations, setting short-term objectives and deadlines, and providing continual guidance).
Although well-developed tools and systems can facilitate performance management, these alone
do not yield effective performance management. Instead of making further changes to formal
performance management systems, many organizations are now devoting more attention to
improving supervisor / employee communication and working relationships (e.g., levels of trust).
Hence, if performance management initiatives are to succeed, the focus needs to shift from the

2. system itself to its use as a tool that guides individual and team development towards
organizational goals.
Integrating Performance Management in Your Talent Management System
The results of the Performance Management can feed into a number of key talent management
processes. In some organizations, the ratings feed into and support the determination of merit
increases in pay. Incorporating competency assessments supports the analysis of strengths and
gaps in employee competencies, thereby supporting the development and implementation of
Individual Learning Plans.
The competency assessment can also support career development and succession planning by
providing an assessment of how closely the employee matches the competency requirements of
other jobs in the organization. By incorporating the competencies in the performance
management process, the organization has the data and information to examine the supply of
available talent to meet the current and future business needs of the organization (Strategic HR
Planning). Finally, by analyzing the selection outcomes against later job performance, one can
determine the efficacy (empirical validity) of the recruitment and selection process.
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III. Performance appraisal methods
1.Ranking Method
The ranking system requires the rater to rank his
subordinates on overall performance. This consists in
simply putting a man in a rank order. Under this method,
the ranking of an employee in a work group is done
against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job
performance against another member of the competitive
group.
Advantages of Ranking Method
i. Employees are ranked according to their performance
levels.
ii. It is easier to rank the best and the worst employee.
Limitations of Ranking Method
i. The “whole man” is compared with another “whole man”
in this method. In practice, it is very difficult to compare
individuals possessing various individual traits.
ii. This method speaks only of the position where an

3. employee stands in his group. It does not test anything
about how much better or how much worse an employee
is when compared to another employee.
iii. When a large number of employees are working, ranking
of individuals become a difficult issue.
iv. There is no systematic procedure for ranking individuals
in the organization. The ranking system does not eliminate
the possibility of snap judgements.
2. Rating Scale
Rating scales consists of several numerical scales
representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are
derived. Advantages – Adaptability, easy to use, low cost,
every type of job can be evaluated, large number of
employees covered, no formal training required.
Disadvantages – Rater’s biases
3. Checklist method
Under this method, checklist of statements of traits of
employee in the form of Yes or No based questions is
prepared. Here the rater only does the reporting or
checking and HR department does the actual evaluation.
Advantages – economy, ease of administration, limited
training required, standardization. Disadvantages – Raters
biases, use of improper weighs by HR, does not allow
rater to give relative ratings

4. 4. Critical Incidents Method
The approach is focused on certain critical behaviors of
employee that makes all the difference in the
performance. Supervisors as and when they occur record
such incidents. Advantages – Evaluations are based on
actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases,
chances of subordinate improvement are high.
Disadvantages – Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback
may be too much and may appear to be punishment.
5. Essay Method
In this method the rater writes down the employee
description in detail within a number of broad categories
like, overall impression of performance, promoteability
of employee, existing capabilities and qualifications of
performing jobs, strengths and weaknesses and training
needs of the employee. Advantage – It is extremely
useful in filing information gaps about the employees
that often occur in a better-structured checklist.
Disadvantages – It its highly dependent upon the writing
skills of rater and most of them are not good writers.
They may get confused success depends on the memory
power of raters.
6. Behaviorally Anchored Rating Scales
statements of effective and ineffective behaviors
determine the points. They are said to be
behaviorally anchored. The rater is supposed to
say, which behavior describes the employee
performance. Advantages – helps overcome rating
errors. Disadvantages – Suffers from distortions
inherent in most rating techniques.

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